The Dutch government had identified two key problems which threaten the future of a functional transportation system in the Netherlands: reduced accessibility, and environmental problems. Both these are caused by the unceasing growth of car use. Transportation by train is supposed to play an important role in solving these problems. However, government plans to reduce its control over the Netherlands Railways NS. This article argues that the goals of a "sustainable" society programme in the rail transportation can be combined with deregulation of this transport market only if the prices users pay can cover the true social costs of the services provided by NS. These costs would include all external costs and meet the principles of scarcity pricing. Unfortunately, political reality is just the reverse. An example is the increasing use of lease cars and business cars, which are attractive for fiscal reasons and lack regulation through prices. The only solution is an integrated policy in which out of pocket expenses for public and private transport are directly related toone another.
Abstract